Heineken Lays Out Plan to Grow Beer Sales, Cut Costs

Dutch brewer Heineken said it aims to deliver mid-single-digit organic net revenue growth each year until 2030, with profit growth outpacing that, as it unveiled an updated strategy for the next five years, Emma Rumney reported for Reuters.

The world’s second-largest brewer by revenue said its “EverGreen 2030” strategy would help it navigate a rapidly changing world that presents both challenges and opportunities.

Under the plan, presented ahead of a capital markets day in Seville, Spain, Heineken said it would focus on growing its business in 17 markets, including through targeted acquisitions, while pursuing divestments where appropriate.

The world’s second-largest brewer by revenue said its “EverGreen 2030” strategy would help it navigate a rapidly changing world that presents both challenges and opportunities.

“We are fundamentally transforming our business to stay ahead in an increasingly volatile geopolitical and economic landscape,” CEO Dolf van den Brink said in a statement ahead of the event.

The company said it expected organic operating profit to grow ahead of revenues, while earnings per share would grow in line with or faster than that. It also aims for over 90% free cash flow conversion.

Profits will be supported by a plan to generate up to €500 million ($583.1 million) in annual gross savings, the company added.